Trust and Integrity in the Global Economy (TIGE) 2016 Conference Report by CAUX-IofC

CAUX CONFERENCES 2016 TIGE CONFERENCE REPORT 5 - 10 JULY 2016 CAUX, SWITZERLAND

Celebrating 10th anniversary of trust and integrity YOUR LOGO (TIGE) in the global economy

Catalysing new models of economic leadership

Contents

Editorial

TIGE 2016 in numbers

TIGE’s metaphor

Celebrating TIGE’s 10th anniversary

Plenary Sessions

Inquiry Groups

Morning Reflection

The TIGE Hub

Reflections from TIGE’s visual harvester

Workshops

Interviews with TIGE participants

CAUX-IofC Foundation (photos), Laura Noble (design), Justin Makii (photos), Esme McAvoy (text), Sophia Schwer (text), Mike Smith (editing), Talia Smith (editing, text and design) and Victoria Waldersee (text). Published by Initiatives of Change UK’s TIGE Programme. Printed by Imprint Print Services, Hersham, Surrey, KT12 3PU, UK 2

Editorial Ten years of TIGE— a community of practice When we say that we have completed a 10year TIGE project and we do not plan another TIGE conference in Caux next summer (at least not the way we know it), I see confusion and disappointment on some people’s faces. ‘Why not?’ they ask. ‘So what are you going to do then?’ ‘Well, we have developed a tremendous global TIGE community. We have tools and theories for trustbuilding in the economy which we would like to test and practise together, supporting each other in what we do locally and regionally, all over the world!’ Does this not sound like a great answer? It does for us, the TIGE team. Some are not convinced. ‘So who is going to drive this?’ they ask, adding: ‘I hope you have this under control’; or ‘I hope you have thought this through.’ This immediately makes me feel at home at TIGE, where we believe that having things under control and planning for our societies as if they were predictable—like machines that can be driven—is a paradigm that has to change in the world. A free-market economy needs a regulatory framework, as Sir Mark Moody-Stuart told us this year. But that is not the same as having everything ‘under control’. What is needed is a spirit of enterprise and innovation if we are to deal with the world’s economic and environmental crises. At the beginning of my involvement in TIGE we received a negative, anonymous feedback from a participant saying that ‘the young people running TIGE are very naïve and sweet, and completely unprofessional. They have no idea what they are doing.’ At that time, it terrified me and made me strive to seem as ‘professional’ as possible (and anything but ‘sweet’). Today, I cannot think of a better compliment. Caux may seem naïve, because Initiatives of Change is, at its best, an idealistic movement in a materialistic world. And as for not knowing what we are doing—I hope it shows we

are humble enough not to pretend that we know how far our efforts, in creating space for deep conversations, will resonate with the world. But we do know, at least to some extent. This year we’ve heard stories of people returning to TIGE and saying: ‘Five years ago I came to speak about problems. Today I am coming to tell you about the solutions I have found, and I want your support in implementing them.’ Or, ‘People at TIGE have supported and inspired me over the years to do what I believe in’—this coming from a prodigious social entrepreneur. But TIGE cannot take credit for all of that. We can only take credit for showing up, year after year, to create conditions for people to nurture each other. Perhaps at our best we have been a ‘boutique’ nurturing event for 100 to 160 people each year who disperse into the world to do wonderful things. This year our mission was to be catalysts of the new economy. By ‘new’ we mean one which nurtures people in their natural and cultural environments. We focused on three ‘I’s’: individuals searching for their authentic paths; inquiries into the ways we can envision and implement better economic alternatives to the current paradigm; and initiatives of those who had been to TIGE before or came for the first time. We did this with a mixture of seriousness and light-heartedness, structure and emergence, professionalism and ‘Zen’, which is as characteristic of TIGE as it is of the global economy, taken in its whole complexity. We continue to nurture the TIGE community of practice of trust and integrity in our personal and professional lives. There are as many ways you can be part of it as there are members. Let’s stay in touch and always take our chance to meet and support each other, wherever we are in the world. Tatiana Sokolova, TIGE Conference Coordinator

TIGE 2016 in numbers TIGE WAS REPRESENTED BY 29 NATIONALITIES

INCLUDING PEOPLE FROM DENMARK, FRANCE, GERMANY, SLOVENIA, SRI LANKA & ZIMBABWE

TIGE WAS ATTENDED BY 149 PEOPLE

Women Men 4

TIGE metaphor The butterfly - a symbol of transformation At TIGE, we ask ourselves how to transform our economy; it is like the caterpillar asking how to become the butterfly. We are the new economy and we can lead the world towards it, starting with ourselves. When we know who we truly are and how we can develop our integrity, we start building relationships of trust, creating a new society. DAY 1: THE EGG - contains the imaginings of the future butterfly. It already has the information for the pattern on its wings to look like, but it is a long journey before it becomes manifest. We imagined the future. What does an economy of well-being look like? DAY 2: THE CATERPILLAR - needs a lot of nourishment. We were hungry for information, ideas and insights. DAY 3: THE COCOON - In the cocoon everything transforms. The food that the caterpillar consumes allows the initial patterns of the butterfly to come into being. We reflected on all we know about ourselves and our vision, and shared this with others. DAY 4: THE BUTTERFLY - We manifest our true selves through being and acting in the world. We opened up to ourselves and others, committing to the next steps and seeking collaboration.

Mentoring A TIGE event is a journey of personal, organizational and societal transformation. People returning to TIGE carry a tremendous wealth of experience, insight, strength of character and compassion. There were also people seeking to understand better their own personal and professional journeys. This year, we brought together for the first time these two kinds of people for oneon-one conversations in order to learn from each other.

Running parallel with the conference, the Being at Full Potential team ran a four-day organizational human potential certification course. Ten (com)passionate change agents came together to learn about the tools and methodologies that enable greater levels of human potential realization within organizations, be it political, for-profit or non-for-profit â&#x20AC;&#x201C; and communities. 5

Celebrating TIGE’s 10th anniversary TIGE Ecosystem Impact Study Ten years of TIGE in Caux, Switzerland (2006–2016) has created a large international network; many seeds of thought and inspiration have been planted. It was time to understand its impact and meaning, explore what has emerged and discover the next stages of TIGE’s evolution. The TIGE team carried out an Impact Study in order to do this.

Some facts from 10 years of TIGE: • • • • • • •

Participants from 83 countries have come to TIGE conferences More than 50,000 hours of voluntary work The average number of participants at each TIGE conference is 145 31 per cent of participants are aged between 21 to 40 Around 65 per cent of participants are new to TIGE each year (Over 1,000 first time participants) The two overarching themes in recent years have been leadership and change The methodology of TIGE is shared experience, story-telling and putting values into practice

• • • •

•

TIGE’s activities: primarily workshops, trainings, conferences and dialogues More than 50 TIGE events held around the world TIGE national chapters are now operating in five countries with more on the horizon A new book, Great Company by Michael Smith (Initiatives of Change UK, 2015), tells some of the ethical business and social entrepreneurship stories that have emerged TIGE resources and frameworks include the TIGE Learning Journey, TIGE Study Guide for leadership and integrity training, Pillars of Trust workshop, TIGE YouTube channel and the Heart of TIGE statement

Caux 2016 celebrates TIGE 10th anniversary with stories and songs

In a colourful evening presentation, TIGE marked its 10th anniversary of hosting conferences on the theme of Trust and Integrity in the Global Economy, a topic more pertinent today than ever. The laughter and music-filled celebrations were hosted by inquiry leader Alexandra Berg, founder of Caring Group of Sweden, and other friends of TIGE. A short film specially made for the occasion opened the session, capturing some of the magic of TIGE in Caux, including interviews with key members involved in co-creating TIGE. Over the last decade, TIGE participants have converged on Caux from 83 countries to discuss broad issues of sustainability, ethical leadership, values-based decision-making, new economic models, and personal and organizational integrity. Mohan Bhagwandas, co-founder of the TIGE conferences and Executive Vice-President of Initiatives of Change International, shared about the beginnings of TIGE. His vision was for a new type of conference—‘a new format for the new information era’—that would bring people from the developed and developing world together to start conversations about the global economy. Berg called on leaders of TIGE chapters around the world to share their activities in their

respective countries. Participants heard how TIGEinspired initiatives are evolving in the UK, Sweden, Denmark, Netherlands, Switzerland, Mexico and Kenya, evidence of how encounters and conversations begun in Caux continue long after the conference closes. The final part of the evening was devoted to music, starting with Greek singer-songwriter Gautier Velissaris (top left). In the true spirit of IofC, he opened his performance by sharing his own personal story of transformation to fulfil his dreams of becoming a musician. Using the beginnings of some lyrics scratched out in Stockholm by TIGE organizers, Gautier put them to music, producing a unique TIGE song that he performed—with plenty of audience participation! A diverse range of musicians and singers then took up the invitation to step up on stage, or to the piano, and perform, leading to a spontaneous, global mix of music, songs and performers. They ranged from Dutch singer and social entrepreneur Merel Rumping, singing Portuguese Fado, to songs by participants, each accompanied by Dutch guitarist Ralph Bijvoet. Uplifting, energizing food for the soul—and a fitting tribute to TIGE and its success in creating lasting human connections that bring about positive change. 7

Plenary sessions Opening keynote: ‘Values trump profit’; ‘Corruption is a threat to civil society’ Opening the conference on 5 July, Sir Mark Moody-Stuart (right) Vice-Chairman of the UN Global Compact, and Laurence Cockcroft, cofounder of the global anti-corruption coalition Transparency International, spoke about the corrosive effect of corruption on societies and on people’s trust in businesses. Truly global in their outlook and careers, both have taken a strong stance against corruption in their respective fields and been instrumental in establishing regulatory, anti-corruption frameworks. Moody-Stuart was the Chairman of Anglo-American plc and, before that, Royal Dutch/Shell Group. The talk and Q&A session was facilitated by Anita Hoffmann, Managing Director of the executive search company, Executiva. Although a ‘strong believer’ in the power of markets, Moody-Stuart acknowledges that markets cannot deliver everything. ‘Markets offer choice to people, they release creativity. But you need frameworks for transparency.’ The right regulations can push companies to meet more stringent environmental standards more rapidly and effectively. Catalytic converters, for example, ‘were installed by regulation, at a cost to all car buyers, but they almost immediately eliminated vehicle emission smog.’ Moody-Stuart views regulation as essential in tackling our looming environmental crises, such as climate change.

‘Cross-sector alliances—engaging different groups to work together—can help solve problems, keep business practices honest and even develop sector-specific ethical regulations’ ‘No single group, whether a business, a civil society organization or even a government, can solve problems alone,’ Moody-Stuart said. Crosssector alliances—engaging different groups to work together—can help solve problems, keep business practices honest and even develop sectorspecific ethical regulations. Responsible businesses have an important role to play, even in places where governance is corrupt. ‘Responsible business 8

is about reporting openly and being accountable not only to stakeholders but also to society at large.’ Staff also need to see what ethical decisionmaking looks like. ‘It might be, “We lost that contract because we wouldn’t pay the bribe.” That way, people see that values trump profit.’ The UN Global Compact can be seen as one of the world’s biggest corporate alliances, with some 8,500 companies involved in 140 countries. ‘Companies sign up voluntarily but they must report openly on what they are doing on each of the 10 points of the Compact.’ And the rules are strict: 3,500 companies that signed up have been ejected for not fulfilling the reporting requirements. ‘Responsible investing’ is another potential force for good. ‘Ten to 15 years ago, if you asked shareholders about what the company was doing, they probably wouldn’t have known.’ But today, more informed investors are ‘raising the bar’, pushing companies towards greater social and environmental responsibility. After 25 years of working in agricultural development in East Africa, Laurence Cockcroft of Transparency International sees corruption as a threat not only to the way business operates but to civil society as a whole. He defines corruption as ‘the misuse of entrusted power for private gain’. However, with the rising power of lobbying groups on political decision-making, the definition can be widened to include ‘the purchase of influence’. Cockcroft outlined the multiple ways

corruption can impact development, including the distortion of projects, such as ‘large-scale infrastructure projects that end up as roads that… lead to nowhere.’ Public services are diminished and there is environmental destruction, such as illegal logging. Corruption also leads to breathtaking sums of public money being siphoned off illegally, often into off-shore tax havens. ‘The Washington-based non-profit, Global Financial Integrity, puts the figure of such accumulated illicit outflows at over $10 trillion dollars’—missing cash that has ‘disastrous effects’ on the budgets of developing economies. Addressing a workshop on the stance against corruption, two days later, Cockcroft (right) said that the biggest block to tackling global corruption is the network of offshore tax havens, where the owners of assets cannot be identified. Some 40 tax havens around the world, of which 16 are UK territories, act as ‘secret jurisdictions’, he said. The lower estimate of assets held there is $10 trilion and the highest is $30 trillion. Although Cockcroft has witnessed progress, such as greater monitoring of corruption by organizations such as the World Bank and the UN, there are still entrenched ‘roadblocks’ to its effective eradication, including embedded corrupt networks at the highest echelons of government and society who invest in political machines in order to secure their position and determine outcomes. For real change to happen, the anticorruption movement needs both ‘a groundswell of grassroots movements’ as well as truly ethical individuals in positions of power. ‘Leaders that live their anti-corruption beliefs can make the difference.’

‘Leaders that live their anti-corruption beliefs can make the difference’

The ethical business response to the UN’s Sustainable Development Goals The business community had welcomed a ‘very inclusive process’ in drawing up the UN Sustainable Development Goals, said Sir Mark Moody-Stuart in a discussion workshop on ‘the ethical business response to the SDGs’, on 6 July. Business input into the 17 goals, launched in 2015, had been channelled through the UN Global Compact (UNGC), where Moody-Stuart is the ViceChairman. Other inputs had come from labour organizations and civil society. This was a far cry from the Millennium Development Goals which, he said, had been drawn up with no consultation with business. The shift in perspective to include the business community had come about thanks to Kofi Annan’s initiative to launch the Global Compact in 2000, in order to ‘put a human face on business’, and, subsequently, through business participation in the UN’s Earth Summits in Johannesburg in 2002 and Rio de Janeiro in 2012. ‘All businesses should make sure that their operations are in line with fundamental values such as those of the UNGC covering human rights, working conditions, the environment and anticorruption,’ Moody-Stuart said. ‘These principles should form the basis on which work towards the Goals is built. ‘When studying the Goals,’ he continued, ‘all businesses will see that they have a role to play in Goal 8—decent work and economic growth— both in their own businesses and that of their supply chains. All businesses will also have a role to play in relation to gender equality (Goal 5) and

climate change (Goal 13). Having decided which goals are impacted positively or negatively by their business, the next step is to embed these in business planning.’ A recent summit in New York had honoured ‘SDG pioneers’, 10 individuals, chosen from a list of 600 proposals, who had demonstrated leadership in their work in relation to one or other SDG.

Economy for the Common Good Socially conscious enterprise makes sound business sense Tony Bradley (right), Director of the Social and Ethical Enterprise Development Centre at Liverpool Hope University, and Naomie Lucas (left), founder and CEO of Southern Wicked Beverages LLC, led the plenary on Economy for the Common Good, covering issues from building local economies of solidarity to the challenge of running businesses that are both socially responsible and financially sustainable. The speakers shared their stories of entrepreneurship and backed up their arguments for an economy based on embedding social responsibility into business strategy with a host of studies demonstrating that this need not cost a business, and may lead to financial gain, as well as contributing to the common good. Highlighting the polarization present in developed economies, Bradley urged participants to recognize that what manifests itself as scepticism and disunity is a symptom of a ‘deeper malaise’, grounded in a lack of trust and integrity on a global scale. He identified the end of growth in the West, a distributive crisis, and the savings glut—of debt in the West and North being fuelled by savings in the South and East—as the main causes of the situation.

‘Forming the basis of a socially responsible business: integrity, responsibility, forgiveness and compassion.’ The solution? There are two options, Bradley said. The first: increase consumption in undeveloped countries to reach a situation of distributive equality. However, this was ‘like trying to dampen a fire by pouring petrol on it.’ The second is to encourage local, green, solidaritybased, resilient economies, providing ‘beautifully small answers to ugly global situations’. These could be implemented in myriad ways: networking hubs for social enterprises; encouraging existing green businesses to expand; creating innovation hubs linking universities, radical political movements; and releasing creative energy in disadvantaged communities are a few possibilities. Lucas recounted the story of her own business which has already heeded the call for a reconnection between business and society. As the leader of the first minority-owned and female

majority-owned moonshine distillery in the US, she has already gained considerable backing for her business, with an NFL sports arena and a major Fortune 500 firm sponsoring her initiative. Deeply affected by her religious beliefs and the inspiration of her grandparents, Lucas illuminated the importance of leading a life that was wealthy not in material terms but in spiritual ones: ‘If we measured Fortune 500 by spiritual wealth,’ she

said, ‘my grandparents would have been among the richest people in the world.’ Lucas is a passionate believer that integrating social responsibility into your business practices isn’t just the right thing to do, it’s profitable too. Sources ranging from the Harvard Business Review to the Northern Trust and Forbes magazine have demonstrated that companies which encourage their employees to volunteer and pledge a portion of their profits to charity yield higher profit margins, revenues and retention rates. Additionally, CEOs whose employees gave them high marks for character had an average return rate on assets of 9.23 per cent over two years, outperforming those with lower character ratings by five per cent. How can this be done? Lucas outlined four universal moral principles which form the basis of a socially responsible business: integrity, responsibility, forgiveness and compassion. She practises what she preaches in the way that her business is run. The ingredients are sourced from local farmers first, and 10 per cent of net profits are reinvested in the communities where products are sold. Both speakers emphasized the importance of recognizing that those attempting to create socially responsible business are not doing so alone. 11

New business and economic models How an integral, green approach is helping to transform the Slovenian economy Dr Darja Piciga (centre right), policy-maker in the Slovenian government and an independent expert in sustainable development, spoke about the impact of Integral Green Slovenia, the initiative she has been leading. She was joined by Professor Ronnie Lessem (left) and Professor Alexander Schieffer, (right) co-founders of the Trans4m Centre for Integral Development. The story of Integral Green Slovenia is a TIGE story emerging out of the annual conferences. In 2010, Piciga, working on developing low-carbon policies, picked up a book on integral economies by Lessem and Schiffer. Piciga, Schieffer and Lessem met at the TIGE conference that year before Piciga invited them to Slovenia. Piciga, who began her career as a cognitive scientist, felt that ‘the cognitive map we were using wasn’t working anymore’. The need to find solutions to global issues, from climate change to food security, made her realize the interconnectedness of issues—and that a holistic approach was needed. Therefore, Schieffer and Lessem’s ‘Integral Worlds’ approach resonated with her. Trans4m’s Integral Worlds addresses imbalances in human systems through a circular model. The centre represents the ‘moral core’ with four ‘realms’—north, south, east and west. The ‘south’ is the realm of relationships, nature and community; the ‘east’ is the realm of inspiration, culture and spirituality; the ‘north’ is of knowledge, science and skills; while the ‘west’ is action, finance and enterprise. The model can be applied to an individual (their core moral values and ‘rootedness’ articulated first, before considering their strengths and weaknesses in each realm, for example). It can be scaled up for use by a company or community.

By mapping these dimensions in a circular way, communities can see how they are interconnected and, in particular, how they are held together by their inner moral core. Schieffer’s and Lessem’s research discovered how vital it is that a society’s outer economic system is aligned with its inner moral core. Being able to collectively articulate the shared values can help a company or community identify the issues for their organization, visualize their goals, and co-create an action plan. Lessem and Schieffer worked with Piciga to engage companies and to support start-up cooperatives and social enterprises. Domel, a vacuum cleaner manufacturer established 70 years ago, was in economic crisis in 2007-8. ‘Darja was able to get workers to reconnect with the company’s own story,’ explained Lessem. ‘The company grew out of a cooperative working in a steep-sided valley. Local people needed to work cooperatively to ensure everyone’s safety.’ This cooperation still shapes their working practices today. Identifying this as a core shared value helped articulate the company’s inner moral core. This work means ‘such values aren’t just plucked from a company handbook but from the soil of a place. The values are authentic and rooted in a company’s history.You can’t just impose a model— you’ve got to find out, and work with, what already exists.’ ‘In Slovenia, before the Second World War, cooperatives were strong,’ says Piciga. ‘With this history, we could see the benefits of reviving cooperatives and promoting social entrepreneurship.’ Slovenia joined the EU in 2004 and, through the ‘smart integration’ of proposals that addressed sustainable development with the establishment of cooperatives, Piciga obtained some EU funding for Integral Green Slovenia. It continues to develop and Trans4m have taken their approach to Zimbabwe, Nigeria and India.

Ethical leadership and governance in finance Financial inclusion: a right or a privilege? Jaime González Aguadé (left), President of the National Banking & Securities Commission of Mexico, and Enno Schmidt, MD of the Enterprise Economy & Art, presented their methods of using finance as a tool for empowerment. Both believe an inclusive financial system is necessary to ensure an economy which respects human dignity and the right to determine one’s own path. However, their proposals were radically different. González Aguadé presented a conditional cash transfer system backed by financial education and infrastructure, while Schmidt called for a universal basic income. González Aguadé spoke of his experience in Mexico, a country with impressive economic growth but high levels of inequality. According to him, the ‘one-size-fits-all’ regulatory environment created by advanced economies has had negative effects on emerging and developing markets whose financial systems differ. Under his stewardship, Mexico implemented a conditional cash transfer programme by which seven million Mexicans have been integrated into the financial system simply through financial education and a debit card. The aim is for recipients to build a strong credit history. Tools for responsible finance are provided. A video, interviewing recipients, portrayed the scheme as being efficient—‘It only takes a few minutes to get my subsidy,’ says one interviewee. A fingerprinting system ensures the right person receives their subsidy, and the attendant monitoring the process is a member of the community.

‘Basic income represents a step in history that is a new understanding of income’ Still, there is work to be done, says González Aguadé. Financial education and infrastructure is still lacking. The Banking and Securities Commission must strengthen regulation, create more infrastructure, collect data, and form a Secretariat of the National Council for Financial Inclusion to ensure the programme is as effective as possible. Enno Schmidt’s (right) proposal is different. For him, the right to income should not be conditional on work. ‘Basic income represents a step in history

Jaime González Aguadé and Enno Schmidt believe an inclusive financial system is necessary in an economy that respects human dignity. However, their proposals are radically different. that is a new understanding of income.You don’t have to deliver a performance to get the right to live—first you have to live, and then you decide what you want to do.’ For the founder of an initiative for financial inclusion, Schmidt has an unusual background: a professional artist, he steered clear of economics until he discovered basic income, and decided to start a People’s Initiative for a vote on the idea in his home country of Switzerland. In 2016, he and a partner gathered the 100,000 signatures necessary to bring the concept to a national referendum. It did not pass, but nevertheless garnered nearly 600,000 votes, placing the unheard of idea in Swiss politics on the agenda. Still, opposition is strong. Schmidt cited polls which state that although the majority say they would continue to work when receiving a basic income, the same proportion believe others would not. He calls this a ‘cultural problem’: a lack of awareness of the needs and ambitions of others. However, their scepticism may be proven wrong: basic income projects have been piloted in the US, India, Namibia, and the movement continues to grow. ‘At the end of the day, it’s about human dignity,’ says González Aguadé. The technicalities are secondary. 13

Sustainable production and consumption Responsible producers and informed consumers: keys to sustainable supply chains Why does sustainable production and consumption matter, who is responsible, and how should it be done? Ingrid Franzon (far right), founder of EnvirohealthMatters, and Tessa Wernink (right), co-founder and Director of Communications of the Netherlands-based social enterprise Fairphone, shared their projects to convey the message that, with accessible information and innovation, a sustainable economy is possible. ‘You shouldn’t need to be a scientist to go shopping,’ says Franzon.Yet in the current consumer environment supply chains have become difficult to trace, let alone comprehend. Consumers, and sometimes producers and distributors, are unaware of what chemicals are being used to manufacture their products. The working conditions within which they are produced are unknown. The environmental cost of transporting the product from factory to consumer is immeasurable. EnvirohealthMatters aims to be a catalyst of simple solutions to so-called ‘envirohealth’ issues for authorities and consumers. Franzon’s focus is on increasing awareness of the chemicals present in consumer products and their detrimental effect on humans, from cancer to infertility.

‘The responsibility to create a sustainable economy does not lie with a single entity’ Her solution is Toxxscan, a database that reveals the chemical health risks of products. Users scan a barcode to find its ingredients and the risks. Chemicals are colour-coded according to the level of risk associated with its consumption. The hope is that producers who are unintentionally producing harmful products will change their supply chains. In turn, consumers will have the tools to make conscious decisions about their purchases. Tessa Wernink’s Fairphone proves that it is possible to produce goods that are both competitive and socially responsible. Wernink sees phones as the perfect metaphor for the disconnection between us and the economy. ‘A phone connects you to the world, and yet we’ve completely lost connection with the phone itself.’ 14

The supply chain is complex. Most, if not all, smartphones produced by commercial companies source material from conflict zones or factories with poor working conditions. Only five per cent of people recycle their phones, representing a waste of energy in the production process, and a health and safety risk to those disposing of the wasted product. Fairphone aims to reform the electronics value chain in four phases: mining, design, manufacturing and life cycle. In 2013, the founders set up a crowdfunding campaign to produce 5,000 phones in an ethical way. In a matter of months, they had raised enough funds to produce 10,000. Now at over 60,000 sold, they are marketing their second version of the product, Fairphone 2—a modular phone that is ‘built to last’. Fairphone’s mission goes beyond selling as many phones as possible. ‘The most ethical phone is the one you already have. Keep it or repair it!’ says Wernink, an unheard of statement from a phone company—‘but our mission isn’t selling phones; it’s a movement.’ By demonstrating that it is possible to produce a smartphone in an ethical way, Fairphone is catalyzing a conversation about sustainable production and consumption. Both speakers’ message: the responsibility to create a sustainable economy does not lie with a single entity. Producers must supply products through more sustainable methods and consumers must inform themselves about the impact of their consumption and make responsible choices. With more tools like Toxxscan, this may become a simpler task in the future.

Dutch social entrepreneur goes out on a limb Merel Rumping has had a passion for travelling from an early age. She has worked with street children and child soldiers in Columbia and it was there she became involved with a micro-financing agency. Through this she discovered the potential of social entrepreneurship. In her home country, The Netherlands, she now works with ProPortion which provides social entrepreneurship consultancy for NGOs, while also launching their own projects. She has founded LegBank which provides easy-to-fit prosthetic limbs for victims of landmines in Colombia. Rumping spoke with the passion, enthusiasm and care that TIGE encourages and fosters. A regular participant at Caux TIGE conferences, Rumping had a conversation about the need for prosthetics during TIGE 2013. An idea arose in her mind based on her experience in the microfinancing agency, combined with her knowledge of the issue. Over 30 million people worldwide are in need of prosthetics but have no access to them—a statistic that shocked the audience. Rumping explained the concept of Legbank, whose mission is to ‘increase access to affordable, qualitative prostheses for low-income amputees in upcoming economies’. Reaching out to the technical university in Delft, she gained volunteer support from students who helped map and research the problem. They found that landmines are the world’s number one

Merel Rumping and guitarist Ralph Bijvoet

cause of amputations and 40 per cent are below the knee. The quality of the prosthetics is key and current standards of the sockets are intricately linked to the production methods. The result is often as different as the people who create the socket. The barriers to access are time, quality and certification. Furthermore, insurance only covers the prosthetic costs and not costly travel to the centres.

‘Increase access to affordable, qualitative prostheses for low-income amputees’ Honing in on the issue, Rumping and her team needed a case study. They found a village in Columbia where there were a staggering 300 amputees, many still in need of a prosthetic limb. Currently it can take up to two years to get one. This can be detrimental to rural inhabitants’ livelihoods. The aim became clear: bring the production closer to rural areas, make the process quicker and produce better quality prosthetics. In cooperation with Strathclyde University, Glasgow, Rumping and the team created the first prototype of the Majicast socket production unit in 2015. Majicast reduces production time to create a bespoke, comfortable socket almost immediately. It requires less skills to use, and produces a consistently higher quality product. Following successful production of Majicast prosthetics, they mapped where to build rural centres to access the areas that are most in need. But in order to be able to expand the operation, they now needed capital investment. Rumping pitched LegBank to Bill Gates but it was Google who decided to invest in this innovative solution with an investment of $1 million. The project was off to a flying start. So what now? The last Majicast prototype is being finalized and the aim is to build three new orthopaedic centres by May 2017. They have also licensed the product to existing centres, and the Dutch government has set up a programme to educate prosthetics makers. After speaking, Rumping gave an enchanting concert of Portuguese Fado music with her guitarist Ralph Bijvoet who, with guitarist Antonio Carlos Costa, form the ensemble group Palpita. They gained a standing ovation, both for her singing and her story. 15

New book focuses on ‘integrators’ rather than entrepreneurs

Professors Ronnie Lessem (right) and Alexander Schieffer, founders of Trans4m, introduced the audience to a 360-degree approach to economic and environmental challenges. They outlined the simplicity of a holistic model that holds many complexities. Lessem’s introduction to his new book The Integrators served as a good conclusion to the day’s explorations of this concept. The book gives examples of people who have successfully used and implemented this holistic approach and, most importantly, how they have done so. It explains what exactly makes them ‘integrators’. Controversially, Lessem stated that the words ‘leadership’ and ‘entrepreneurship’ are ones he does not agree with, as he believes they represent regression. He explained that an integrator is not a manager of people and therefore doesn’t need an organization behind him. Consequently, leadership and entrepreneurship don’t fit the description when talking about integrators. With an extensive background in Business Management studies and working with entrepreneurs, Lessem clarified that people are a variety of humanity and, therefore, not entrepreneurs.

‘You cannot become an integrator unless you create an organization true to your society and soil’ Entrepreneurship, he said, is a myth because people hold a variety of characters within them: the Change Agent, the Enabler, the Adventurer and the Innovator. But one will always be more dominant than the others. The Innovator is what we would call the entrepreneur. However, there is another dimension to it, Lessem explained. The progression from entrepreneurship to management

and then leadership is still not enough. We need integrators to grow into ‘ultimate individual and organizational transformation’. Society wants to transform and that is why we need integrators, Lessem concluded. The book offers examples of local and global stories of people who capture the essence of what it means to be an integrator. There are different types of integrators: corporate, civic or eco-integrators, amongst others. But they all have one thing in common, as Lessem stated: ‘You cannot become an integrator unless you create an organisation true to your society and soil.’ Despite the fact that integrators’ work can be deeply contradictory at times, they operate at a higher consciousness, bringing details together with a constant view of enormous dimensions. The Integrators: the next evolution in leadership, knowledge and value creation by Ronnie Lessem, Routledge, Routledge Focus series, new edition (May 2016).

Inquiry Groups Participants joined one of four Inquiry Groups which were held over four days. Each inquiry was a group process designed to explore together and answer a specific question.The same group met throughout the conference with facilitators helping to explore the question step by step. At the end of the conference the groups’ findings were reported and participants saw how the inquiries were linked. The Inquiry Groups were: Ethical leadership Convened by Veronique Sikora, Founder Weaving Social Fabric, Alexandra Berg, Founder Caring Group of Sweden, and Pedro Langre, Founder Institute for Centred Growth The theme of this inquiry group was introduced as: ‘Cut the bla bla bla… How do I walk my talk in ethical leadership? How integral am I in my ethical leadership journey?’ In exploring our personal and professional experience of integrity, we practised aligning ourselves, our social behaviour, with trust and openness. We shared stories and observations, professional and personal, listening to what was important. We reflected on the joy, the power or the struggle of these, and we created space to explore the link between ethical leadership and our behaviour, our dilemmas. We identified the values associated with our behaviours and how these affect who we are and how we act. Throughout the inquiry we used the metaphor of the transformation of the butterfly, from the egg to the caterpillar, to the cocoon and into a butterfly. We asked questions: What is painful to let go of in order to transform our situations? We left space to share in groups and, coming back to the whole group, engage at a higher level of consciousness. Questions were brought to the group level, enabling others to offer insights. It was a process of letting go and opening up to the community and reflecting on what I, we, can learn from others, or what would I, we, like to see emerge? The final phase was to explore the ethical challenges we needed to handle in our own lives, to lead ourselves and others along a true journey; to walk our talk. This phase was opened with a powerful story of personal integrity and its role in professional integrity, honouring human dignity and care. A moment of individual reflection followed. Participants then worked on their inquiry process. We asked everyone to decide what to share and how deeply. The discussions were open, honest, and authentic. Some had shared personal thoughts with their seniors or with employees. In concluding,

participants came up with practical action to go forward in their ethical leadership journey. The finale was integrating participants’ experience, each offering one ‘pearl’ word (illustrated below). Mike Smith, head of business programmes at IofC UK, reflected that ‘the process and impact of the inquiry was one of transparency, honesty and depth. It was truly an inquiry rather than a series of lectures, because everyone was encouraged to contribute. The single words harvested each day were a kaleidoscope of ethics. The process had greater depth than I had anticipated.’

New business and economic models Convened by Anna Rosengren, Initiator & Co-creator GNH Sweden, and Ann-Marie Östlund, entrepreneur and facilitator. This inquiry dug deep and opened for wide-lens understanding of the common good. It combined dialogue, meditation, art and existential reflection whilst allowing for a co-created transformation of economy, business, society and self. The group explored all of what we are, the angel as well as the devil inside, in order to open up new awareness about ourselves, each other and society. There were many perspectives of ourselves and our world; how can we broaden the scope of compassion and inclusion so as to expand our sense of reality? Such questions were discussed in the context of new economic models. 17

Economy for the Common Good—the care economy inquiry Convened by Bela Hatvany, entrepreneur and inventor This inquiry explored the spiritual basis for economic transformation. It was joined by Stefanie Ristig-Bresser, pioneer at Economy for the Common Good, and Enno Schmidt, film-maker and proponent of Unconditional Basic Income. Participants looked at ways for a better system for our species and the world to co-exist. One system is that of Unconditional Basic Income which Schmidt introduced to the group. With the idea of an unconditional income, important issues arise: What is the value of work? What ultimately is work? What do I really want to do? What is the economy, money and why can’t we give trust to each other to do what we have in our hearts to do? Schmidt proposes that an unconditional income for all is a strong incentive to create decent working conditions, meaningful entrepreneurial goals, a greater degree of equality and greater freedom of choice and responsibility

for the employee. Ristig-Bresser led a discussion about looking inward at ourselves in order to move forward as a society. She presented the benefits of self- and mind-management as a basis for contributing to a more collaborative world. In today’s world, people suffer from stress and fear and this leads to individuals focusing increasingly on themselves and feeling disconnected to other people and the environment they live in. According to the World Health Organization, 25 per cent of Europeans have suffered from depression. This phenomenon was discussed and it was agreed that change has to start from within which means being capable of transforming negative emotions and using one’s full potential, Ristig-Bresser explained. What kind of leaders do we need in order to create a world that works for all? If we are able to lead ourselves and be the change we want to see in others, we will be able to be the leaders of change towards a world for the common good.

Sustainable consumption and production Convened by Stephen Hinton, Co-founder Transition Sweden, and Kabir Arora, Coordinator Alliance of Indian Wastepickers The concern amongst everyone in this inquiry was about current modes of production and consumption, which have limits that we are not abiding by. There are seeds of desire to find better ways to manage the economy. Reflecting the butterfly metaphor, the DNA for a better world economy lies in the egg. On the first day, we explored the DNA and shared our passions and contributions for bettering the world. This was followed by a guided meditation on a more sustainable world. Themes emerged such as repair and maintenance, service-based economies, localizing and globalizing action and sharing intellectual capital and solidarity economies. On the second day, we looked at behaviours that drive the economy and consumption. The fear of being judged a nonconformist is a factor that perpetuates current consumption. Thoughts on the following three-point framework which drives consumption were consolidated by the participants:

* I don’t have enough; * I have no power; * More is better These points often emerge from childhood experiences, which enforce consumption. If they can be replaced by values—i.e. there is abundance, I can make a difference and there are limits to production and consumption—our views could change how we perceive economies. On the third day, concepts such as biomimicry, for designing products the way nature organizes itself, and product life-cycle were discussed. This was followed by prototyping. Participants were given the themes of food security, energy, mobility and essential services and were asked to design solutions around these challenges for a city. Outcomes for prototyping included the creation of an urban farming community, food supply through a sharing economic model, a sustainable energy grid and solid waste management sharing economic model, a sustainable energy grid and solid waste management.

‘The fear of being judged a nonconformist is a factor that perpetuates current consumption’

Morning reflection The 7.30am reflection session focused on the personal stories of change and inspiration from the individuals who were later speakers at the plenary sessions after breakfast. Supported by the ‘butterfly’ metaphor of transformation, and the conference theme, ‘Catalysing new models of economic leadership’, this approach was most helpful in listening to and meeting some of the speakers as individuals. They shared their experiences of personal change and/or insights that had led them to face their journeys of integrity with courage, in their lives and work commitment. The speakers, Tony Bradley, Alexander Schieffer, Pedro Langre and Ingrid Franzon, shared how their personal journeys had transformed them to make a greater impact in their professional work. They connected this to the plenary sessions when they spoke about commercial and/or social entrepreneurship in the fields of education, integral economics, banking, finance and health services.

The TIGE Hub The Hub has become a part of TIGE over the years for good reason; it is the central part of a wheel where conference elements connect. The TIGE Hub encouraged conference participants to take the step from conference to catalysts of the global economy. The focus during each Hub meeting was to listen to the process of the caterpillar; to listen to the vulnerable inner voices of what was emerging in the Inquiry groups, in the Community groups, and between us all. It was a process of seeing what was emerging and to create an overview. We had fresh daily visualizations from the different groups, which were then elaborated as the Inquiry group leaders described what had unfolded in their groups. New pictures appeared. The Hub might be perceived as encouaraging the emergence of the butterfly of Trust and Integrity in the Global Economy, from now on carried digitally by our TIGE Circle on Changemakers Forward.

Reflections from TIGE’s visual harvester Vanessa Jane Smith calls herself a ‘visual innovator’. Smith captured the discussions of TIGE through her creative, live drawings. She told us some of her reflections from her experience at TIGE: As we got together each afternoon in the Hub to bring in an overview and a sense of what was unfolding, we managed to draw a Big Picture of what had occurred by weaving the conferenece elements together. We were gaining a sense of the objectives and intentions of the TIGE conference. I felt that the personal stories were becoming key to transmitting a cohesive model or approach, something essential that participants can grasp and work with. Also, what was being expressed on the personal level is also reflected and prevalent at a global level. What seemed to be coming through is the need to redefine shared global values which drop deeper, past cultures and religions, and into the human level. It is a big ask but one that needs to be addressed and focused on in times of incredible tension and crisis.

Merel Rumping and guitarist Ralph Bijvoet Jaime Gonzalez (Left) Visual harvester,Vanessa Jane Smith

‘We were gaining a sense of the objectives and intentions of the conference’

Workshops Holacracy: a radical new management system for purpose-driven organizations led by Erik Slotboom, change manager, coach and trainer Holacracy is a completely new system for how companies can organize themselves. ‘Organizations are the most powerful force of change on the planet—yet they’re held back by outdated operating models. There is a better way,’ states Slotboom. Imagine working in an organization with no management team, no executive board or middle managers: where everyone was considered equal and where you were able to sense what needed to be done in your role and then have the autonomy to respond, rather than waiting for top-down instructions. Imagine working in a place where there is no ‘boss’—or, better, where the only boss is a shared, higher purpose. This is Holacracy and it’s already working in free-thinking, courageous companies around the world, companies whose employees are ready to throw away the old model in search of a workplace where they can express themselves freely and bring personal creativity and passion into what they do.

Supervising and regulating the financial system: a story of personal and social change led by Pedro Langre, CEO and Founder, Institute for Centred Growth, Mexico, and Jaime Gonzalez Aguadé, President of the National Banking and Securities Commission of Mexico. Given the growing complexity of effectively regulating an uncertain and ever changing financial system, we need solid institutions capable of promoting a healthy, stable and balanced development of the system as a whole, into protecting the interests of the public. Langre and Aguadé told their stories of change from the last four years, from the personal to the social, addressing also the organizational dimensions of that on-going transformation. Participants looked at new models of ethical leadership, organizational development, economic organization and social impact.

‘Organizations are the most powerful force of change on the planet—yet they’re held back by outdated operating models’ According to a Gallup poll about the state of the global workplace, only 13 per cent of employees worldwide are engaged in their work. In the US, it’s slightly better but still, less than a third of the workforce polled are engaged in their work. That means more than two-thirds are disengaged, bullied, frustrated, burnt out or just plain bored. Could more horizontal company structures like Holacracy be on to something?

Jaime Gonzalez (Left) and Pedro Langre

‘We need solid institutions capable of promoting a healthy, stable and balanced development of the system’

Business of Peace workshop led by Peter Brew, former Director of the Intentional Business Leaders Forum, UK Conflict is rooted in poverty and exclusion and business can and should play a key role in promoting and contributing to sustainable practices that balance ethics, environmental responsibility, respect for human rights and dignity and equitable economic development. This workshop explored these issues that face business and co-created a framework of action for business. ‘Conflict

is rooted in poverty and exclusion’ Peter Brew

Stance against corruption led by Laurence Cockcroft, co-founder Transparency International; Inese Voika, lecturer, Stockholm School of Economics in Riga; Jean-Pierre Mean, President, Transparency International Switzerland. Cockcroft outlined his journey in assisting with the launch of Transparency International (TI) as a member of TI’s first international board and as the second Chair of its UK Chapter (2002-8). His prime concern with the fight against corruption has been its impact on development in emerging economies and especially amongst low income groups.Voika and Mean shared stories and some of their experiences working with TI. Laurence Cockcroft

Pillars of Trust: Integrity Training Workshop led by Michael Smith, Head of Business Programmes, Initiatives of Change UK, and Talia Smith, Project Manager, IofC UK’s Business Programmes. The TIGE UK team delivered a lively presentation and discussion on Five Pillars of Trust in the global economy and Seven Cs of Trust which affect business culture and operations. Participants reflected on the implications for themselves and their organizations, sharing stories and experiences. This integrity-training workshop drew on the stories told in Michael Smith’s book Great Company: trust, integrity and leadership in the global economy. The workshop is based on the team’s integrity training guide for business which can be found on-line. 23

Integral Green Slovenia: an alternative and sustainable economic model for Slovenia and the wider world led by Dr Darja Piciga, Coordinator of the Citizens Initiative for an Integral Green Slovenia, Professors Alexander Schieffer and Ronnie Lessem, co-founders of Trans4m In Slovenia, a tiny country at the heart of Europe, an alternative economic, social and environmental

model is emerging both in theory and in practice. As a civil society initiative, Integral Green Slovenia has been paving the way for a newly integral and green approach to enhancing nature and community, culture, science, technology and the economy at the same time, and in resonance with the inner moral core of society. The workshop showed how this is being done highlighting practical cases.

Circular economy led by Stephen Hinton, co-founder Transition Sweden and Kabir Arora, coordinator Alliance of Indian Wastepickers For economic growth, cities consume the resources sourced from faraway lands and release matter termed as waste. This workshop highlighted the need to frame the discourse on sustainability in cities around the questions of ‘flow of matter’,

i.e. where is the material coming from and where is it going after its usage? It was shown that the dichotomy between what is resource and what is waste is not clear—waste too becomes a resource. Recycling, up-cycling and down-cycling are all ways of taking waste in and transforming it into a resource. This workshop connected the dots of larger questions of the circular economy and sustainable production and consumption.

Workshops were also held on: • TIGE-Switzerland: Elaborating shared values in a team. • Opportunities and challenges of human rights due diligence for companies • Sustainable economic models through

education and community development: an impact study from South Africa • Co-operative inquiry: Economic cultures, the arts and spirituality (Integral Economics) • Gross National Happiness

Interviews with TIGE participants Barbro Curman, Sweden I did some work with IofC Sweden, but I didn’t know about Caux. Everyone kept talking about it—all the different generations that have come through here, the great history of what has been accomplished here, its transformative power, its beauty. I just got curious. The transformation this place stands for is not new to me—to go from inside out has been part of my life for 40 years, but in another field. But the way of doing it here, together with people from so many countries, and so many nationalities and cultures—that’s what’s special, and it’s why I came. Getting to know people from different cultures during my time here was so valuable because I realized that I have not done enough back home to integrate those coming to Sweden into our society. I thought I had—and I have, from a distance—but I’ve not

involved myself personally the way I should, and I learnt that here. It’s this natural networking, and the emphasis on responding to your inner calling, that is important to me. I’d never found this so clearly anywhere else. And really, it’s all down to the people. They emphasize the spiritual side of things more freely here, more openly—and that makes me feel at home.

‘The emphasis on responding to your inner calling, that is important to me. I’d never found this so clearly anywhere else’ 25

Marie Örnesved, Sweden I found out about TIGE three years ago through a friend in India who was planning the conference and invited me to come. I didn’t really think twice: I just said, ‘I’ll be there!’ There are so many facets to this place.What I’ll bring back with me to Sweden is that sense of it being a place of peace.The most important thing I learned here was through one of the sessions I attended. We established that if we really want something to happen in the world, if we work through our inner fears in relation to what we’re wishing for, and we make that transformation within ourselves, then it will happen in the world. This is a beautiful place to allow that

Klaus Wilke, Germany I heard about Caux and TIGE through an IT and business consultant, Simone Mueller, who worked as a consultant for me at Toyota. She told me about the atmosphere at Caux, the workshops and said that there were people for me here. She tried to explain it to me but in the end said, ‘I can’t explain it. You just have to go!’ Working in a big company in Germany, I meet and speak to lots of people but I´m usually discussing something specifically businessrelated with other Germans or employees from the EU. Being here is a completely different atmosphere. I feel free to talk and not just in a business context. Every day, I’ve had intense, in-depth conversations that 26

transformation to happen in oneself. I’d sensed this idea before, but it never came through as clearly as it did here—that’s what this place is for! It’s the centre of the inner universe, which might just change the outer one.There is so much beauty— beautiful people, beautiful environment and a beautiful heritage.

not just touch my brain but also my soul. People look you in the eye.There’s a huge level of trust here. People speak honestly and directly about their lives and not just about their professional careers. I’ve sat down and had lunch with people from the United States, Cambodia, Zambia, the UK—just such a mix of people and from all different walks of life. As a coach and mentor, I value one-on-one conversations. It means that the conversations that happen between the conference schedule have been more important to me than the presentations and speeches. I’ve had a very interesting couple of coaching sessions being a mentor for someone at a crossroads in their lives. Being a mentor or coach is something that I want to do more of in the future. I do a lot of reflection in my day-to-day life, so the values of the conference resonate with me. Being here has confirmed that I need these kinds of connections with people, being part of a more international circle of people. I’m already involved in some business circles in Germany but they are not so international. Here it is like a condensed version of the global context.That’s what has been really valuable for me and I hope to keep in touch with the people I have met here.

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CAUX - INITIATIVES OF CHANGE FOUNDATION Established in 1946, the CAUX - Initiatives of Change Foundation (CAUX-IofC) organizes and coordinates international and local conferences, seminars and training in Switzerland, primarily in its Conference Centre, the Caux Palace, bringing together a true diversity of people. CAUX CONFERENCE CENTRE Owned by the CAUX - IofC Foundation, the Caux Conference Centre provides a safe and privileged space to inspire, equip and connect individuals, groups and organizations from around the globe to engage effectively and innovatively in the promotion of trust, ethical leadership, sustainable living and human security. TRUST AND INTEGRITY IN THE GLOBAL ECONOMY International TIGE conferences have been held in Caux, Switzerland, since 2006. TIGE is now an international programme, a community and a movement driven by the best in individuals’ motives. It is a platform for all stakeholders in the global economy who wish to inspire, connect and encourage businesses and individuals to act according to their core values, and contribute to an equitable society and humane world. THE TIGE 2016 TEAM: Tatiana Sokolova (Conference Coordinator), Daya Bhagwandas, Mohan Bhagwandas, Ranjit Bhagwandas, Christiaan Groen, Per Hörberg, Rishabh Khanna, Justin Makii, Rodrigo MartínezRomero, David Nguyen, Véronique Sikora, Mike Smith and Talia Smith.